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CAK operationalizes an informant reward scheme

NAIROBI, Kenya, Jan 22- The Competition Authority of Kenya has operationalized an Informant Reward Scheme, which provides a mechanism and framework under which informants will be able to receive financial incentives in exchange for actionable information in the course of the Authority’s investigation..

The authority through a statement revealed that an informant who provides intelligence leading to the closure of an investigation through penalisation will receive an award.

” This informant will be entitled to up to 1percent of the administrative penalty imposed by the Authority,” reads the statement.

The penalty shall however not exceed Sh1 million.

According to CAK, the scheme, which became effective January 1 2021, is targeted at persons with credible intelligence regarding restrictive trade practices mainly cartel like conduct.

The program also extends to misrepresentation and safety of products, abuse of dominance, abuse of buyer power, merger and acquisitions implemented without approval and unconscionable conduct.

“Cartels which harm consumers through impeding choice, Innovation and increasing prices , flourish under a veil of secrecy, ” said CAK DG Wang’ombe Kariuki.

” Through the scheme, the authority has the objective of deepening it’s intelligence gathering capacity with regard to such clandestine operations using informants who are close to the conduct but not party to it,”he added.

CAK added that an informant, can be an employee who was directed by their superiors to attend a meeting between competing firms where price fixing was discussed, but did not actively participate in the decision making.

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Under the scheme, the authority is committed to ensure that the identity of the informants is not compromised.

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